Understanding Percentages

Front

What is the simple interest formula?

Back

I = P * r * t, where I is the interest, P is the principal amount, r is the rate of interest, and t is the time in years.

Front

What does 'P' represent in the simple interest formula?

Back

P represents the principal, which is the amount of money borrowed or deposited.

Front

What is the term for the percentage increase from the original cost to the new cost?

Back

Percent markup.

Front

What is the term for the percentage decrease from the original cost to the new cost?

Back

Percent markdown.

Front

What is the term for the percentage charged on a loan or earned on an investment?

Back

Interest rate.

Front

What is simple interest?

Back

Interest paid only on the amount borrowed or earned on the amount deposited.

Front

How do you calculate simple interest?

Back

Simple interest is calculated using the formula I = P * r * t.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any interest that has been added.

Front

What is a percent equation?

Back

A percent equation is an equation that shows the relationship between a part, whole, and percent, typically in the form: part = percent * whole.

Front

What is percent error?

Back

Percent error is a measure of how inaccurate a measurement is, expressed as a percentage of the accepted value.